How can I get funding for my small business or acquisition?
A business acquisition loan is a type of financing that a business owner can use to buy an existing business or open a new franchise. The loan can help you;
- Buy a successful business or company
- Build an already existing business without going through startup phase
- Grow your business by competitor acquisition
- Open a new franchise location for your business
- Buy out your partner’s stake or interest in your business
There are many business acquisition lenders available and ready to help you purchase a business by offering acquisition loans with good terms.
How do you finance a business acquisition?
A business acquisition loan can help you fund and purchase an existing business or franchise without having to go the start-up route, with terms and rates specifically suited to your needs. Purchasing an already established business usually require more finances than most aspiring business owners have, hence, the need for business acquisition funding.
Most lenders can help with acquisition of proven businesses but you need to be able to provide a solid business plan, have a good credit score, convince them of your ability to build a success of the business, and pay back the loan. There are many options of acquisition loans that you may want to know a little more about, before you make an informed decision as to which is right for you.
What is the business acquisition loan application process?
Before you even consider making an application for a business acquisition loan, you need to have all the necessary documents and know exactly the amount you are seeking. You stand a better chance of accessing large loan amounts with an acquisition loan, if you are well organized and have answered all questions a lender may have with regards to your loan application.
A poor impression and failure to correctly answer questions that are asked during your application process may greatly hurt your chances of getting an approval. Whether you are applying for an SBA loan, bank term loan, or any other loan, get your facts in order and present the best of yourself and knowledge of what you want.
Filling an online application is your best chance to get your loan request in front of multiple lenders who can help with your business acquisition loan all at the same time. Through the single online application, you may be able to get multiple offers, leaving you with the option of choosing the right business acquisition lender for you.
Can I use an SBA loan to buy a business?
Yes, SBA loan offers an affordable and flexible solution for borrowers’ intent on small business acquisitions. It can be used to finance a wide range of business services including funding startups due to its flexibility and ease of access. Approved borrowers can have access to up to US$5 million in funds for terms of up to 25 years at low interest rates. Even though the SBA does not issue direct loans, it sort of guarantees the loan or a portion of it issued by approved SBA lenders.
This implies that the SBA will cover all or a portion of the loan in case a borrower fails to pay back the loan as per the agreed terms, minimizing risks to lenders hence making it easily accessible to a wide range of small business owners, to help them grow. Despite the obvious benefits, you will have to meet stringent requirements and a long approval duration that may take several months before you get an approval.
To qualify for an SBA 7(a) loan, you will have to sign a personal guarantee in the event that you own more than 20% of the business. In addition, your personal and business credit score (FICO SBSS Score) needs to be 140 or more. You will also need to show proof of having sufficient cash flow, no federal government or student loans, no past or present criminal history, and the business does not operate in an excluded industry such as life insurance, loan sharks, pyramid like schemes, or businesses engaged in political and religious activities.
You will also be required to provide a fully completed SBA loan application, business financial statements e.g. profit & loss, annual projected income statement, personal financial statement, 3 year personal and business tax returns, and a detailed explanation of how you will use the loan to better your business.
How urgently do you need the loan?
If you need access to quick business loans or are patient enough to wait for an SBA loan approval, send us your details and tell us how much you need. Let us help you find an SBA lender or an alternative lender, and get multiple loan options to choose from.
How can I get a small business loan?
To get a small business loan, you need to apply online here and have records of your business financial performance and evaluation, a business plan, financial projections, be able to offer business acquisition loan down payment, and any related experience that may help convince potential lenders that you can successfully manage and grow your business and be able to repay the loan.
We have SBA approved lenders and alternative lenders in our large database and may be able to assist with multiple business loan options for your small business. If you are not prepared with all the paperwork needed, you may want to look for other sources of funding for your small business like investor financing, in exchange for an equity stake in your business.
How do I fund my LLC?
To fund your LLC, you may want to consider getting;
- Startup Loan
- SBA Loan
- Bank Loan
- Equipment financing
- Business Expansion Loan
How can I start a business with no credit?
If you want to start a business with no credit, you may want to do research and find potential investors for your business who are willing to offer business acquisition loan with no money down. You may also want to consider;
- Investor financing
- Crowd funding or peer to peer lenders
- Bank loans
- Donations from family and friends
- Personal savings
Can I use my EIN to get a loan?
Yes, you can expect a potential lender to ask you to provide some if not all of the following once you’ve determined the right loan product for your business and where you’d like to apply:
- Basic information about you and your business
- Your personal and business bank statements
- Your personal and business tax returns (EIN)
- Business financial statements and debt schedule
- Business plan and relevant documents indicating industry experience
- Your business valuation information
- Loan collateral or down payment information
- Business licenses, ownership documents, and legal contracts
- Business sale contract or letter of intent signed by seller
When you have all the necessary required documentation, you will be able to fill, complete, and submit your detailed application for loan approval.
Can I start an LLC with bad credit?
Trying to get a business acquisition loans with bad credit to finance an LLC can be challenging. You are likely to have fewer financing options available though, alternative lenders can be your best option. It is important to approach any financing option with an open mind even with your bad credit. Any lender willing to loan you money for your LLC with bad credit will most likely:
- Charge you higher interest rates and fees
- Offer smaller loan amounts than you may need for your LLC
- Require short payback terms and large monthly payments
There are many alternative lenders offering unsecured business acquisition loans to companies with bad credit though the amounts of loan may be lower than your expectations and fees charged may be higher.
Originally published at https://myhelpfund.com.
